HYPOTHETICAL RENT VS BUY COMPARISon

Palm Trails Condominiums Sale Price
$149,000
Purchase vs Rent Comparison Rental Expense
$895
2 Bedroom / 2 Bathroom Interest Rate
6.25%
  Promo Financing
- ask for details
3.99%
 
Scenarios
Rent
Purchase
Purchase
Purchase
Down Payment Percentage
  

5%
10%
20%
Down Payment Amount
  
7,450
14,900
29,800
Loan/Rent Payment*
895
737
698
568
Plus Property Tax**
  
107
107
107
Plus HOA Fees
  
170
170
170
Less Tax Savings***
  
(241)
(230)
(144)
Net Monthly Cost
895
773
746
702
         
Net Monthly Savings     
(122)
(149)
193
         
* Based on an interest-only loan
** Based on a combined primary and secondary tax rate for the subdivision for the year 2005 of 10.7893 per $100 of assessed valuation.
***HOA Fees are currently an estimate only
****Based on Federal tax savings; federal rate calculated on income between $30,800 and $68,500. Arizona on income between $50,000 and $100,000.
Amortization (years) 30
4% Broker Co-Op

Zero Closing Costs:
- No appraisal cost
- No title charges
- No escrow fee

12 months of HOA dues free

Property Taxes paid through June 30, 2007
Federal Tax Savings
(marginal Rate for income
$30,800 - $68,500)
25.000%
Arizona Tax Savings
(marginal Rate for income>$38,291)		 4.720%
Combined Tax Savings 28.540%
   
Property Tax Rate 10.7893%
HOA Fees $170
   
Disclaimer: This comparison is a hypothetical example only. Actual costs and savings will be particular to each buyer based upon their income, down payment, credit ratings, loan amounts, interest rates and other criteria that are unique to each individual and the mortgage industry itself. Seller does not represent, warrant or guarantee that you will achieve monthly savings or any savings at all. You should obtain personal advice from qualified professionals to determine the actual comparison of renting vs buying based upon your unique criteria.
Sales are conditioned upon buyer's receipt and acceptance of the Arizona Department of
Real Estate subdivision public report.

The seller reserves the right to change or discontinue incentives in its sole discretion at any time without prior notice or obligation.

*If Buyer obtains a first trust deed loan through Seller's preferred lender, then: (a) Seller will pay Buyer's non-recurring purchase and loan closing costs with the EXCEPTION OF DISCOUNT POINTS. Non-recurring costs consist of customary title and escrow fees, loan fees, appraisal, credit report and similar items. Items not included are recurring costs such as interest (including prepaid interest), homeowner's insurance or loan impound payments and proerty tax impound payments. (b) Seller will prepay twelve months' HOA assessments, commencing with the first month after close of escrow. HOA assessements will be based on the current HOA monthly assessment (the specific dollar amount will be specified on the closing statement). Any increases in assessments following the close of escrow will be Buyer's responsibility. This does not include the required HOA capital contribution or any special assessments, which will remain Buyer's responsibility. (c) Seller will prepay property taxes through June 30, 2007; this does not include any supplemental tax assessments.